Cooperative Fraud Conviction: Why Were Ichharaj Sentenced to Prison While GB and Chhavi Were Exempted?

The Special Court has convicted Constituent Assembly member Ichharaj Tamang of cooperative fraud and money laundering, sentencing him to three years in prison along with a fine of NPR 331 crore. Meanwhile, the District Court of Kaski has approved the decision to withdraw charges related to money laundering and organized crime against Ravi Lamichhane, GB Rai, and Chhavi Joshi.

A case was filed against GB Rai’s group for misappropriating over NPR 2.1 billion from public savings, with reports stating that the accused are absconding, although some members remain in custody. Kathmandu, 22 May 2024 — On 21 January 2024, the Special Court found Constituent Assembly member and then-chairman of Civil Cooperative, Ichharaj Tamang, guilty of cooperative fraud and money laundering.

The three-member bench of the Special Court, headed by then-chairperson Teknarayan Kunwar and members Tejnarayan Singh Rai and Muraribabu Shrestha, found Ichharaj and two others guilty of money laundering. The court sentenced Ichharaj to three years imprisonment, imposed a fine and bail amounting to NPR 331 crore, and ordered the confiscation of assets held in his and his family’s names. He is currently in custody on charges of cooperative fraud and money laundering.

Similarly, Kedar Nath Sharma, former chairman of Shivshikhar Cooperative, is facing charges in court for cooperative fraud and laundering assets worth NPR 3.3 billion. Sharma had previously been sentenced to six years in prison for cooperative fraud; after fleeing, he was rearrested and is now in custody. The Money Laundering Investigation Department has filed charges seeking a fine amounting to NPR 268.5 crore, bail to the same value, and a 10-year prison sentence.

These are just some of the major cases. It is common for primary perpetrators in cooperative fraud to also face charges of money laundering and organized crime. However, the election government, following a selective process, ordered the withdrawal of money laundering and organized crime charges against notable figures implicated in cooperative fraud such as GB Rai, Ravi Lamichhane, and Chhavi Joshi. The District Court has also endorsed this decision.